Correct Success: ASE Technology Holding Co., Ltd. Reports Unaudited Consolidated Financial Results for the Third Quarter of 2020

TAIPEI, Taiwan, R.O.C., Oct. 30, 2020 /PRNewswire/ — ASE Expertise Holding Co., Ltd. (TAIEX: 3711,NYSE: ASX) (“We”, “ASEH”, or the “Firm”), the main supplier of semiconductor manufacturing providers in meeting and check, immediately reported unaudited internet revenues[1] of NT$123,195 million for 3Q20, up by 5% year-over-year and up by 15% sequentially. Internet earnings attributable to shareholders of the mother or father for the quarter totaled NT$6,712 million, up from a internet earnings attributable to shareholders of the mother or father of NT$5,734 million in 3Q19 and down from a internet earnings attributable to shareholders of the mother or father of NT$6,937 million in 2Q20. Primary earnings per share for the quarter have been NT$1.57 (or US$0.107 per ADS), in comparison with primary earnings per share of NT$1.35 for 3Q19 and primary earnings per share of NT$1.63 for 2Q20. Diluted earnings per share for the quarter have been NT$1.54 (or US$0.105 per ADS), in comparison with diluted earnings per share of NT$1.33 for 3Q19 and diluted earnings per share of NT$1.60 for 2Q20.

RESULTS OF OPERATIONS

3Q20 Outcomes Highlights – Consolidated

Internet income contribution from packaging operations, testing operations, EMS operations and others, every represented roughly 46%, 10%, 43% and 1%, respectively, of whole internet revenues for the quarter.
Value of income was NT$103,475 million for the quarter, up from NT$88,740 million in 2Q20.

Uncooked materials price totaled NT$62,860 million for the quarter, representing 51% of whole internet revenues
Labor price totaled NT$13,725 million for the quarter, representing 11% of whole internet revenues
Depreciation, amortization and rental bills totaled NT$11,878 million for the quarter.

Gross margin decreased 1.5 proportion factors to 16.0% in 3Q20 from 17.5% in 2Q20.
Working margin was 7.4% in 3Q20, in comparison with 7.8% in 2Q20.
When it comes to non-operating objects:

Internet curiosity expense was NT$660 million.
Internet international alternate acquire of NT$561 million was primarily attributable to the depreciation of U.S. greenback in opposition to New Taiwan greenback.
Loss on valuation of monetary belongings and liabilities was NT$406 million.
Internet acquire on equity-method investments was NT$277 million.
Different internet non-operating earnings of NT$101 million have been primarily attributable to miscellaneous incomes. Whole non-operating bills for the quarter have been NT$127 million.

Revenue earlier than tax was NT$9,014 million for 3Q20, in comparison with NT$8,879 million in 2Q20. We recorded earnings tax bills of NT$1,797 million for the quarter, in comparison with NT$1,646 million in 2Q20.
In 3Q20, internet earnings attributable to shareholders of the mother or father was NT$6,712 million, in comparison with internet earnings attributable to shareholders of the mother or father of NT$5,734 million in 3Q19 and internet earnings attributable to shareholders of the mother or father of NT$6,937 million in 2Q20.
Our whole variety of shares excellent on the finish of the quarter was 4,338,531,132, together with treasury inventory owned by our subsidiaries. Our 3Q20 primary earnings per share of NT$1.57 (or US$0.107 per ADS) have been primarily based on 4,265,546,050 weighted common numbers of shares excellent in 3Q20. Our 3Q20 diluted earnings per share of NT$1.54 (or US$0.105 per ADS) have been primarily based on 4,281,115,585 weighted common variety of shares excellent in 3Q20.

3Q20 Outcomes Highlights – ATM[2]

Value of revenues was NT$57,280 million for the quarter, up by 5% sequentially.

Uncooked materials price totaled NT$20,102 million for the quarter, representing 28% of whole internet revenues.
Labor price totaled NT$12,104 million for the quarter, representing 17% of whole internet revenues.
Depreciation, amortization and rental bills totaled NT$11,198 million for the quarter.

Gross margin decreased 1.5 proportion factors to 20.2% in 3Q20 from 21.7% in 2Q20.
Working margin was 9.5% in 3Q20, in comparison with 10.4% in 2Q20.

3Q20 Outcomes Highlights – EMS

Value of revenues for the quarter was NT$47,990 million, up by 33% sequentially.

Uncooked materials price totaled NT$42,621 million for the quarter, representing 80% of whole internet revenues.
Labor price totaled NT$1,540 million for the quarter, representing 3% of whole internet revenues.
Depreciation, amortization and rental bills totaled NT$551 million for the quarter.

Gross margin elevated 0.Three proportion factors to 9.7% in 3Q20 from 9.4% in 2Q20.
Working margin elevated to 4.4% in 3Q20 from 3.1% in 2Q20.

LIQUIdiTY AND CAPITAL RESOURCES

Capital expenditures in 3Q20 totaled US$415 million, of which US$288 million have been utilized in packaging operations, US$73 million in testing operations, US$52 million in EMS operations and US$2 million in interconnect supplies operations and others.
As of September 30, 2020, whole unused credit score traces amounted to NT$255,582 million.
Present ratio was 1.33 and internet debt to fairness ratio was 0.75 as of September 30, 2020.
Whole variety of staff was 97,259 as of September 30, 2020, in comparison with 95,448 as of June 30, 2020.

Enterprise Evaluate

Clients

ATM consolidated Foundation

Our 5 largest clients collectively accounted for roughly 48% of our whole internet revenues in 3Q20, in comparison with 50% in 2Q20. Three clients every accounted for greater than 10% of our whole internet revenues in 3Q20 individually.
Our prime 10 clients contributed 60% of our whole internet revenues in 3Q20, in comparison with 61% in 2Q20.
Our clients which are built-in machine producers or IDMs accounted for 30% of our whole internet revenues in 3Q20, in comparison with 29% in 2Q20.

EMS Foundation

Our 5 largest clients collectively accounted for roughly 83% of our whole internet revenues in 3Q20, in comparison with 78% in 2Q20. One buyer accounted for greater than 10% of our whole internet revenues in 3Q20.
Our prime 10 clients contributed 90% of our whole internet revenues in 3Q20, in comparison with 89% in 2Q20.

About ASE Expertise Holding Co., Ltd.

ASEH is the main supplier of semiconductor manufacturing providers in meeting and check. The Firm develops and affords full turnkey options masking front-end engineering check, wafer probing and closing check, in addition to IC packaging, supplies and digital manufacturing providers by USI with superior applied sciences, breakthrough improvements, and superior improvement packages. With superior technological capabilities and a worldwide presence spanning Taiwan, China, South Korea, Japan, Singapore, Malaysia and Mexico in addition to the US and Europe, ASEH has established a status for dependable, top quality services. For extra information, please go to our web site at http://www.aseglobal.com.

Secure Harbor Discover

This press launch accommodates “forward-looking statements” inside the that means of Part 27A of the US Securities Act of 1933, as amended, and Part 21E of the US Securities Alternate Act of 1934, as amended. Though these forward-looking statements, which can embody statements relating to our future outcomes of operations, monetary situation or enterprise prospects, are primarily based on our personal data and knowledge from different sources we consider to be dependable, you shouldn’t place undue reliance on these forward-looking statements, which apply solely as of the date of this press launch. The phrases “anticipate,” “consider,” “estimate,” “count on,” “intend,” “plan” and comparable expressions, as they relate to us, are supposed to establish these forward-looking statements on this press launch. These forward-looking statements are essentially estimates reflecting the perfect judgment of our senior administration and our precise outcomes of operations, monetary situation or enterprise prospects might differ materially from these expressed or implied by the forward-looking statements for causes together with, amongst others, dangers related to cyclicality and market situations within the semiconductor or digital business; adjustments in our regulatory setting, together with our capacity to adjust to new or stricter environmental rules and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and digital manufacturing providers we provide and for such outsourced providers typically; the extremely aggressive semiconductor or manufacturing business we’re concerned in; our capacity to introduce new applied sciences in an effort to stay aggressive; worldwide enterprise actions; our enterprise technique; our future enlargement plans and capital expenditures; the strained relationship between the Republic of China and the Individuals’s Republic of China; basic financial and political situations; the latest shift in United States commerce insurance policies; potential disruptions in industrial actions brought on by pure or human-induced disasters; fluctuations in international forex alternate charges; and different elements. For a dialogue of those dangers and different elements, please see the paperwork we file infrequently with the Securities and Alternate Fee, together with the 2019 Annual Report on Kind 20-F filed on March 31, 2020.

Supplemental Monetary Data

Consolidated Operations

	3Q/20	2Q/20	3Q/19
EBITDA (NT$ Tens of millions)	23,230	22,488	21,214

ATM Consolidated Operations

	3Q/20	2Q/20	3Q/19
Internet Revenues (NT$ Tens of millions)	71,820	69,516	67,901
Revenues by Software
Communication	53%	54%	53%
Pc	14%	14%	14%
Automotive, Client & Others	33%	32%	33%
Revenues by Sort
Bumping, Flip Chip, WLP & SiP	37%	38%	35%
Wirebonding	37%	35%	37%
Discrete and Others	8%	7%	9%
Testing	17%	18%	17%
Materials	1%	2%	2%
Capability & EBITDA
CapEx (US$ Tens of millions)*	362	424	413
EBITDA (NT$ Tens of millions)	19,775	20,037	18,312
Variety of Wirebonders	25,117	24,667	25,008
Variety of Testers	5,715	5,790	5,254

EMS Operations

	3Q/20	2Q/20	3Q/19
Internet Revenues (NT$ Tens of millions)	53,137	39,709	50,599
Revenues by Finish Software
Communication	40%	46%	36%
Pc & Storage	6%	12%	9%
Client	40%	28%	41%
Industrial	9%	10%	9%
Automotive	4%	3%	4%
Others	1%	1%	1%
Capability
CapEx (US$ Tens of millions)*	52	70	23

* Capital expenditure excludes constructing development prices.

ASE Expertise Holding Co., Ltd.
Abstract of Consolidated Assertion of Complete Revenue Knowledge
(In NT$ thousands and thousands, besides per share information)
(Unaudited)

	For the three months ended			For the 9 months ended
	Sep. 30 2020	Jun. 30 2020	Sep. 30 2019	Sep. 30 2020	Sep. 30 2019
Internet revenues:
Packaging	56,172	53,622	53,804	161,407	145,263
Testing	12,351	12,690	11,493	36,604	30,729
EMS	53,126	39,703	50,584	125,550	117,055
Others	1,546	1,534	1,676	4,540	4,112
Whole internet revenues	123,195	107,549	117,557	328,101	297,159

Value of revenues	(103,475)	(88,740)	(98,449)	(273,416)	(252,697)
Gross revenue	19,720	18,809	19,108	54,685	44,462

Working bills:
Analysis and improvement	(4,926)	(4,837)	(4,906)	(14,372)	(13,376)
Promoting, basic and administrative	(5,653)	(5,545)	(5,817)	(16,682)	(16,265)
Whole working bills	(10,579)	(10,382)	(10,723)	(31,054)	(29,641)
Working earnings	9,141	8,427	8,385	23,631	14,821

Internet non-operating (bills) earnings:
Curiosity expense – internet	(660)	(771)	(866)	(2,324)	(2,741)
Overseas alternate acquire (loss)	561	718	12	955	(508)
Achieve (loss) on valuation of monetary belongings and liabilities	(406)	(17)	(19)	(237)	2,339
Achieve on equity-method investments	277	105	148	343	108
Others	101	417	61	762	761
Whole non-operating earnings (bills)	(127)	452	(664)	(501)	(41)
Revenue earlier than tax	9,014	8,879	7,721	23,130	14,780

Revenue tax expense	(1,797)	(1,646)	(1,501)	(4,618)	(3,530)
Revenue from persevering with operations and earlier than noncontrolling curiosity	7,217	7,233	6,220	18,512	11,250
Noncontrolling curiosity	(505)	(296)	(486)	(964)	(783)

Internet earnings attributable to shareholders of the mother or father	6,712	6,937	5,734	17,548	10,467

Per share information:
Earnings (losses) per share
– Primary	NT$1.57	NT$1.63	NT$1.35	NT$4.12	NT$2.46
– Diluted	NT$1.54	NT$1.60	NT$1.33	NT$4.01	NT$2.40

Earnings (losses) per equal ADS
– Primary	US$0.107	US$0.109	US$0.087	US$0.276	US$0.159
– Diluted	US$0.105	US$0.107	US$0.085	US$0.269	US$0.155

Variety of weighted common shares utilized in diluted EPS calculation (in 1000’s)	4,281,115	4,273,770	4,261,515	4,284,010	4,256,985

FX (NTD/USD)	29.46	29.94	31.17	29.80	30.99

ASE Expertise Holding Co., Ltd.
Abstract of Consolidated Assertion of Complete Revenue Knowledge – ATM
(In NT$ thousands and thousands, besides per share information)
(Unaudited)

	For the three months ended			For the 9 months ended
	Sep. 30 2020	Jun. 30 2020	Sep. 30 2019	Sep. 30 2020	Sep. 30 2019
Internet revenues:
Packaging	58,417	55,732	55,163	167,749	147,980
Testing	12,351	12,693	11,495	36,610	30,732
Direct Materials	1,020	1,051	1,211	3,085	3,055
Others	32	40	32	101	100
Whole internet revenues	71,820	69,516	67,901	207,545	181,867

Value of revenues	(57,280)	(54,434)	(53,193)	(164,589)	(147,620)
Gross revenue	14,540	15,082	14,708	42,956	34,247

Working bills:
Analysis and improvement	(3,827)	(3,777)	(3,894)	(11,252)	(10,351)
Promoting, basic and administrative	(3,904)	(4,081)	(4,401)	(12,099)	(12,262)
Whole working bills	(7,731)	(7,858)	(8,295)	(23,351)	(22,613)
Working earnings	6,809	7,224	6,413	19,605	11,634

ASE Expertise Holding Co., Ltd.
Abstract of Consolidated Assertion of Complete Revenue Knowledge – EMS
(In NT$ thousands and thousands, besides per share information)
(Unaudited)

	For the three months ended			For the 9 months ended
	Sep. 30 2020	Jun. 30 2020	Sep. 30 2019	Sep. 30 2020	Sep. 30 2019
Internet revenues:
Whole internet revenues	53,137	39,709	50,599	125,573	117,091

Value of revenues	(47,990)	(35,979)	(46,105)	(113,648)	(106,791)
Gross revenue	5,147	3,730	4,494	11,925	10,300

Working bills:
Analysis and improvement	(1,126)	(1,085)	(1,042)	(3,194)	(3,107)
Promoting, basic and administrative	(1,695)	(1,403)	(1,353)	(4,392)	(3,853)
Whole working bills	(2,821)	(2,488)	(2,395)	(7,586)	(6,960)
Working earnings	2,326	1,242	2,099	4,339	3,340

ASE Expertise Holding Co., Ltd.
Abstract of Consolidated Stability Sheet Knowledge
(In NT$ thousands and thousands)
(Unaudited)

	As of Sep. 30, 2020		As of Jun. 30, 2020

Present belongings:
Money and money equivalents		55,814	58,223
Monetary belongings – present		5,993	5,483
Notes and accounts receivable		86,718	73,763
Inventories		62,948	50,649
Others		22,167	14,395
Whole present belongings		233,640	202,513

Monetary belongings – non-current & Investments – fairness methodology		14,279	12,950
Property plant and gear		230,938	238,757
Proper-of-use belongings		8,346	9,091
Intangible belongings		76,383	77,154
Others		17,964	18,127
Whole belongings		581,550	558,592

Present liabilities:
Quick-term borrowings		34,099	45,814
Present portion of bonds payable & Present portion of long-term borrowings[3]		13,708	11,366
Notes and accounts payable		71,515	54,400
Others		56,152	61,045
Whole present liabilities		175,474	172,625

Bonds payable		49,249	39,263
Lengthy-term borrowings[4]		122,097	115,518
Different liabilities		17,187	17,251
Whole liabilities		364,007	344,657

Fairness attributable to shareholders of the mother or father		205,510	200,409
Non-controlling pursuits		12,033	13,526
Whole liabilities & shareholders’ fairness		581,550	558,592


Present Ratio		1.33	1.17

Internet Debt to Fairness Ratio		0.75	0.72

ASE Expertise Holding Co., Ltd.
Abstract of Consolidated Money Circulate Statements
(In NT$ thousands and thousands)
(Unaudited)

	For the three months ended			For the 9 months ended
	Sep. 30	Jun. 30	Sep. 30	Sep. 30	Sep. 30
	2020	2020	2019	2020	2019
Money Flows from Working Actions:
Revenue earlier than earnings tax	9,014	8,879	7,721	23,130	14,780
Depreciation & amortization	13,022	12,785	12,610	38,495	37,822
Different working actions objects	(8,550)	(1,659)	(7,252)	(14,686)	(11,883)
Internet money generated from working actions	13,486	20,005	13,079	46,939	40,719
Money Flows from Investing Actions:
Internet funds for property, plant and gear	(12,297)	(16,587)	(18,771)	(42,489)	(39,100)
Different funding actions objects	(156)	1,902	488	1,541	2,464
Internet money utilized in investing actions	(12,453)	(14,685)	(18,283)	(40,948)	(36,636)
Money Flows from Financing Actions:
Whole internet proceeds from (compensation of) money owed	12,412	(18,900)	26,553	7,401	20,860
Dividends paid	(8,521)	–	(10,623)	(8,521)	(10,623)
Different financing actions objects	(5,917)	(457)	(3,356)	(6,178)	(4,404)
Internet money generated from (utilized in) financing actions	(2,026)	(19,357)	12,574	(7,298)	5,833
Overseas forex alternate impact	243	(1,569)	(1,240)	(1,351)	(214)
Internet improve (lower) in money and money equivalents	(750)	(15,606)	6,130	(2,658)	9,702
Money and money equivalents originally of interval	58,223	73,829	55,090	60,131	51,518
Money and money equivalents on the finish of interval	57,473	58,223	61,220	57,473	61,220
Money and money equivalents within the consolidated stability sheet	55,814	58,223	61,220	55,814	61,220
Money and money equivalents included in disposal teams held on the market	1,659	–	–	1,659	–

[1] All monetary data offered on this press launch is unaudited, consolidated and ready in accordance with Taiwan-IFRS (Worldwide Monetary Reporting Requirements as endorsed to be used within the R.O.C.). Such monetary data is generated internally by us and has not been subjected to the identical evaluate and scrutiny, together with inner auditing procedures and audit by our impartial auditors, to which we topic our audited consolidated monetary statements, and will range materially from the audited consolidated monetary data for a similar interval. Any analysis of the monetary data offered on this press launch must also consider our printed audited consolidated monetary statements and the notes to these statements. As well as, the monetary data offered is just not essentially indicative of our outcomes of operations for any future interval.

[2] ATM stands for Semiconductor Meeting, Testing and Materials.

[3] Present portion of long-term borrowings embody long-term loans and notes payable.

[4] Lengthy-term borrowings embody long-term loans and payments payable.

Investor Relations Contact:

[email protected]
Tel: +886.2.6636.5678
http://www.aseglobal.com

SOURCE ASE Expertise Holding Co., Ltd.